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Property insurer expects London fire payouts to exceed £25m

This week's fire in a 24-storey block of flats in London is expected to cost property insurers more than £25 million (S$44 million), Norwegian insurer Protector Forsikring told Reuters on Thursday.

PHOTO: AFP

[OSLO] This week's fire in a 24-storey block of flats in London is expected to cost property insurers more than £25 million (S$44 million), Norwegian insurer Protector Forsikring told Reuters on Thursday.

The company expects the cost to be covered mainly by its reinsurance program. "Reinsurance is handled by Munich Re, which will pick up almost the entire cost," Protector Chief Executive Sverre Bjerkeli said.

The insurance policy for the building itself amounted to about £20 million, while additional costs, including alternative housing for residents, would make up the rest, he added.

The Norwegian company wrote the insurance policy for the Grenfell Tower building, where authorities have confirmed 12 deaths following Wednesday's fire.